The University of Colorado has substantially raised Deion Sanders‘ compensation, finalizing an amended employment agreement that will increase the head football coach’s annual salary to $10 million in 2025—nearly doubling his previous pay. Sanders’ pay climbs to $12 million in Year 5 of the deal. At the same time, the agreement removes the school’s prior commitment to allocate at least $5 million annually for an assistant coaches pool.
The five-year extension propels Sanders into the top 10 highest-paid college football coaches, ranking eighth in average annual value (AAV) at $10.8 million. Georgia’s Kirby Smart remains at the top with an AAV of $13 million, based on the 10-year, $130 million contract he signed in May 2024. Ohio State’s Ryan Day recently moved up the ranks to second place with an AAV of $12.5 million after his contract extension, coming just weeks after his team clinched the national title.
Texas’ Steve Sarkisian follows in third with an AAV of $11.55 million after a raise following the Longhorns’ playoff berth. Rounding out the top five are Clemson’s Dabo Swinney ($11.5 million) and USC’s Lincoln Riley ($11 million).
Last year, 21 college football coaches ranked among the 50 highest-paid coaches in American sports.
While Sanders’ base salary remains unchanged at $500,000, the updated contract doubles his supplemental salary for public relations, promotion and fundraising activities. Additionally, his allowance for private air travel has been increased from $200,000 to $300,000.
The new agreement extends Sanders’ commitment to the CU through Dec. 31, 2029. Should he decide to leave the program prematurely, he would owe a liquidated damages fee, which decreases over time: $12 million if he leaves before Dec. 31, 2025; $10 million before Dec. 31, 2026; $6 million before Dec. 31, 2027; $4 million before Dec. 31, 2028; and $3 million before Dec. 31, 2029.
On the flip side, if Colorado decides to terminate Sanders without cause, the university would be obligated to pay 75% of the remaining base and supplemental salary on his contract, meaning they are currently on the hook for a significant amount.
The contract also maintains its unusual provision allowing Sanders to disclose any athletically related outside income to his superiors verbally, thus enabling him to follow NCAA bylaws while ensuring that no public paper trail is created for these earnings.
As part of the agreement, Sanders and the school have agreed to “meet and confer in good faith” at the end of the 2027 football season to discuss the possibility of another contract extension.
Sanders led Colorado to a 9-4 record this past season, his second in Boulder, during which CU’s Travis Hunter won the Heisman Trophy. The Buffaloes ended their season by losing to BYU in the Alamo Bowl.
Eben Novy-Williams contributed to this report.
